GeoPark (GPRK) Q2 2026 Earnings Call Transcript

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DATE

Wednesday, Aug. 5, 2026 at 10 a.m. ET

CALL PARTICIPANTS

• Chief Executive Officer - Felipe Bayon Pardo
• Chief Financial Officer - Jaime Caballero Uribe
• Chief Operating Officer - Rodolfo Martin Terrado
• Chief Exploration and Development Officer - Rodrigo Dalle Fiore
• Shareholder Value and Capital Markets Director - Maria Catalina Escobar

TAKEAWAYS

• Average Production -- 37.3 thousand barrels of oil equivalent per day, reflecting disciplined reservoir management and stable output from the Llanos 34 and CPO-5 blocks in Colombia.
• Revenue -- $143.3 million, representing a 12% sequential increase driven by improved realized prices and stable production volumes.
• Adjusted EBITDA -- $73.1 million, yielding a 51% margin despite upward pressure from currency appreciation and higher energy costs.
• Operating Profit -- $40.8 million, noting that previous quarter results were affected by a nonrecurring breakup fee related to the Frontera acquisition.
• Net Income -- $14 million, supported by a higher commodity price environment with Brent averaging approximately $97 per barrel.
• Vaca Muerta Exit Production -- 5,000 to 6,000 barrels of oil equivalent per day, targeted for year-end 2026 as development activities in Argentina accelerate.
• Capital Investment -- $76 million during the second quarter, with approximately two-thirds of the total directed toward Vaca Muerta development.
• Revised Annual CapEx Guidance -- up to $250 million, increased from the previous range of $190 million to $220 million to accelerate value-accretive activities.
• H2 2026 Argentina CapEx -- $40 million to $50 million, focused on facility upgrades, water disposal wells, and preparing the first drilling pad for 2027.
• Lifting Costs -- $17.8 per barrel in the second quarter, rising from $14.7 per barrel in the first quarter due to Colombian and Argentine peso appreciation.
• Updated Lifting Cost Guidance -- $17 to $19 per barrel for the remainder of the year, up from the initial guidance of $13 to $15 per barrel.
• Cash Position -- $316 million at quarter end, providing financial flexibility for potential inorganic growth in Colombia, Argentina, and Venezuela.
• Net Leverage -- 1.2x EBITDA, maintaining a conservative balance sheet while executing a peak investment phase.
• 2026 Hedging -- 19,000 barrels per day protected through three-way collars, providing price floors of $65 per barrel.
• 2027 Hedging -- 19,000 barrels per day secured with floors of $75 per barrel and ceilings ranging from $85 to $86 per barrel.
• Dividend -- $0.023 per share, representing the final payment under the dividend framework announced in the previous year.
• Vaca Muerta Operational Efficiency -- 180 frac stages completed with peak performance reaching nine fracs per day and 20 operational hours per day.
• Currency Sensitivity -- Every 100 peso change in the exchange rate per U.S. dollar impacts operating expenses by approximately $2.5 million for the remainder of the year.
• Secondary Recovery -- Waterflooding currently accounts for 25% of production at the Llanos 34 field, supported by an expansion of injector wells.
• Energy Demand -- Field operations consume 65 MW, prompting initiatives to shift from spot energy prices to fixed contracts and grid connections to mitigate costs.

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RISKS

• Terrado stated, "the lifting cost increase in the first quarter of this year from 14.7 to the quarter which has finished 17.8... it is outside of the guidance," noting that full-year costs are now expected to be higher than original estimates due to currency and energy inflation.
• Bayon stated, "There is upward pressure on our operating cost from both the Colombian and Argentine currencies appreciation versus the dollar," identifying foreign exchange volatility as a primary driver of margin pressure.
• Bayon noted that the company is preparing for El Nino, stating that "droughts and very little rain... will eventually take energy prices higher up," presenting a risk to operating costs in Colombia.

SUMMARY

Management reported stable operational performance across its Colombian assets while significantly accelerating its growth program in Argentina's Vaca Muerta shale. The company reported improved financial metrics supported by high realized oil prices, though performance was partially offset by currency-driven cost inflation and rising energy demand in its primary fields. GeoPark Limited (NYSE:GPRK) transitioned to a peak investment phase, focused on expanding its unconventional production base and evaluating inorganic opportunities in Venezuela and Colombia's natural gas sector. The company's strategic outlook is centered on leveraging technical expertise from Argentina to capitalize on potential policy shifts in Colombia that may favor new unconventional drilling and licensing rounds.

• CEO Bayon noted a strategic shift regarding the incoming Colombian administration, stating, "The incoming administration has been very vocal in terms of their support to oil and gas and mining and infrastructure and an overall private investment."
• Management is evaluating cross-border gas opportunities in Venezuela, with Bayon reporting that the team has visited the country multiple times to assess "oil in place in different licenses in different basins" that are "very, very large."
• The company secured a dedicated drilling rig under a three-year agreement to provide long-term execution certainty for the Vaca Muerta development program.
• COO Terrado highlighted operational benchmarks in Argentina, stating, "the number of fracs per day we have done several days with 9 fracs per day... that is a benchmark" for efficiency in the region.
• Management confirmed that the first horizontal well in its new Argentine program started flowing on Aug. 4, 2026, marking the transition from infrastructure build-out to production ramp-up.
• The company applied to Argentina's RIGI Investment Incentive Program to support the development of an unconventional oil hub and secure long-term fiscal benefits.
• CEDO Dalle Fiore detailed plans to maintain Llanos 34 stability through polymer flooding, expecting to increase the total number of injector wells to 18 by early next year.

INDUSTRY GLOSSARY

• BOEPD: Barrels of oil equivalent per day, a measure used to combine oil and natural gas production into a single unit based on energy content.
• Llanos 34: A primary oil-producing block in Colombia that serves as GeoPark's core source of cash flow.
• RIGI: An investment incentive program in Argentina designed to provide fiscal and regulatory stability for large-scale infrastructure and energy projects.
• Three-way collars: A hedging strategy involving the purchase of a put option and the sale of a call option and a lower-strike put to protect against price drops while retaining some upside.
• Unconventional hydrocarbons: Oil and gas found in impermeable rock formations, such as shale, that require advanced extraction techniques like hydraulic fracturing.
• Vaca Muerta: A major shale formation in Argentina containing significant deposits of unconventional oil and gas.
• Waterflooding: A secondary recovery method where water is injected into an oil reservoir to increase pressure and stimulate production.

Full Conference Call Transcript

Operator: Good morning, and welcome to the GeoPark Limited Conference Call following the results announcement for the second quarter ended June 30, 2026. After the speakers' remarks, there will be a question and answer session. If you would like to ask a question at this time, press 1 on your telephone keypad. If you would like to withdraw your question, If you do not have a copy of the press release, it is available at the Invest With Us section on the company's corporate website at www.geo-park.com. A replay of today's call may be accessed through this web in the Invest With Us section of the GeoPark corporate website.

Before we continue, please note that certain statements contained in the results press release and on this conference call are forward looking statements rather than historical facts. And are subject to risks and uncertainties that could cause actual results to differ materially from those described. With respect to such forward looking statements, the company seeks protections afforded by the Private Securities Litigation Reform Act of 2000. These risks include a variety of factors, including competitive development, and risk factors listed from time to time in the company's SEC reports and public releases. Those lists are intended to identify certain principal factors that could cause actual results to differ materially from those described in the forward looking statements.

But are not intended to represent a complete list of the company's business. All financial figures included herein were prepared in accordance with IFRS and are stated in US dollars unless otherwise noted. Reserves figures correspond to PRMS standards. On the call today from GeoPark is Felipe Bayon, chief executive officer Jaime Caballero, chief financial officer Martin Terrado, chief operating officer, Rodrigo Dalle Fiore, chief exploration and development officer and Maria Catalina Escobar, shareholder value and capital markets director. And now I will turn the call over to Mr. Felipe Bayon, Mr. Bayon, you may begin.

Felipe Bayon Pardo: Good morning, everyone, and thank you for joining us for our second quarter 26 results call. We delivered another quarter of consistent execution. Demonstrating the resilience of our core business while continuing to advance in our strategic priorities. Colombia continues to provide resilient production and cash generation while Argentina is progressing well and becoming an increasingly important contributor to our future growth. During the second quarter, we achieved production on an average of 37.3 thousand barrels of oil equivalent per day performing within our full year guidance and broadly in line with the first quarter. This consistency reflects disciplined reservoir management and the operational capabilities of our teams. In Argentina, execution accelerated significantly during the quarter.

We completed drilling on pad 1.03 thousand advancing hydraulic fracturing campaign and secured environmental approval for the next phase of drilling in Loma Jarillosa These milestones reinforce our confidence in the quality of the assets and in our ability to deliver the targeted exit production of approximately 5 thousand-6 thousand barrels of oil equivalent per day by year-end 2026. Importantly, we also secured a dedicated drilling rig under a 3-year agreement providing long term execution certainty for the development of our Vaca Muerta program. In addition, together with Gas y Petroleo del Neuquen, we applied to Argentina's RIGI Investment Incentive Program which supports the development of our unconventional oil hub and reinforces our long term growth strategy.

Argentina continues to evolve into a transformational growth platform for GeoPark. In Colombia, Llanos 34 continued benefiting from disciplined reservoir management and secondary recovery initiatives. CPO-5 remained a very stable contributor despite operational challenges experienced earlier in the year, while Llanos 23 continued to perform well through ongoing development activities. Together, these assets continue to provide stable production and cash generation. Importantly, all operations were conducted with strong health and safety performance with no injuries and no major process safety events. The quarter also benefit from a stronger commodity price environment. Brent averaged approximately $97/bbl and narrower Vasconia differential supported higher realized prices partly offset by hedging cost. This operational and commercial performance translated into solid financial results.

Revenue increased 12% sequentially to $143.3 million supported by stable production and improved realized prices. Adjusted EBITDA reached $73.1 million representing a 51% margin despite higher energy cost and the strong appreciation of the Colombian and Argentine currencies which impacted our operating cost. Operating profit totaled $40.8 million, compared with the previous quarter it is important to remember that the first quarter results, a nonrecurring breakup fee associated with the Frontera acquisition. Net income for the quarter was $14 million Capital allocation remained disciplined throughout the quarter. We invested approximately $76 million with nearly 2 thirds directed to Argentina as we continue executing the Vaca Muerta development plan while maintaining a 19% return on average capital employed.

Our balance sheet remains 1 of GeoPark's key competitive advantages. During the quarter, our cash position increased to $316 million and we reduced net leverage to 1.2x EBITDA. We also renewed and extended a committed contingent credit facility through 2028 providing additional financial flexibility as we execute our investment program. Our disciplined risk management approach also remains unchanged. We continue protecting cash flows through 3 way colors covering approximately 19 thousand barrels per day during 2026, while approximately 19 thousand barrels per day of expected 2027 production has already been protected under similar structures. This approach provides downside protection while preserving upside participation.

The board declared a quarterly dividend of $0.023 per share representing the final payment under the dividend framework announced last year. As previously communicated, our capital allocation priorities are now on completing this peak investment phase while preserving balance sheet strength and positioning the company for the next stage of free cash flow generation. Overall, we believe GeoPark is very well positioned. Our Colombian portfolio continues generating resilient cash flows. Argentina is advancing, and our balance sheet provides the financial flexibility to continue with the disciplined pursuit of material inorganic options in Colombia, Argentina, and Venezuela.

Would like to recognize the continued commitment of our employees and contractors and their focus on safety, operational excellence, and efficiency to deliver these results. Before closing, I would like to take a moment to thank our shareholders For their continued support reflected in the successful outcome of our annual general meeting all resolutions were approved by more than 99% of votes cast. Following the strengthening of our long term shareholder base earlier this year, with a strategic investment from Grupo Gilinski, we have been glad to welcome a number of other long term shareholders to our company. The AGM approved the appointment of new members to our board of directors.

To this effect, I would like to sincerely thank Sylvia Escobar, and Marcela Vaca for their dedication and valuable contributions to GeoPark over the years, and welcome Dorita Gilinski and Camilo Martinez to our board. We look forward to their contributions. Thank you again for joining us. And with that, let's open the floor to your questions.

Operator: If you would like to ask a question, please press * on your telephone keypad. To withdraw any questions, press * again. Our first question comes from Alejandro Anibal Demichelis from Jefferies. Please go ahead. Your line is open.

Alejandro Anibal Demichelis: Morning, gentlemen. Thank you very much for taking my questions and congratulations on the results. Philippe, couple of questions, if I may, please. First 1 is with the new Colombian administration kind of coming in very shortly, what kind of changes in policies for the sector can you expect, and how do you see those benefiting GeoPark? And then the second question is, you just mentioned some opportunities in Venezuela Maybe you can give us some kind of indication of what are those kinds of size and quality of the opportunities that you have seen in Venezuela, please. Thank you.

Felipe Bayon Pardo: Thanks, Alejandro, and good morning. And thanks for joining the call. And thanks for your congratulations on the results. The first thing in terms of Colombia, and I will I will start there. We are very pleased with the incoming government. The government the incoming administration has been very vocal in terms of their support to oil and gas and mining and infrastructure and an overall private investment and creating good conditions for that investment to be received by Columbia.

So I think from that point of view, we are we are very, very pleased, especially Alejandro with the backdrop of the current government that has been against industry, you know, quite publicly in terms of no new licensing for oil and gas, and absolutely very, very little support for industry. So from that point of view, I think we are very pleased. We have already had discussions with the incoming administration And as you know, GeoPark is a long term investor in Colombia. Colombia is the source of our cash generation. it is it is where we are actually supporting the growth that we are seeing in Vaca Muerta in particular. So we are very, very pleased with that.

And I would say, Alejandro, 1 thing is, we do see some good opportunity set, a good opportunity set in Colombia, both in the conventional and the unconventional hydrocarbons. And also in oil and gas or liquids and gas. As you very well know, Colombia has a structural shortage of gas where the country is importing 30-35% of the gas it uses on a daily basis. And, Alejandro, I would like to create a bridge to Argentina. Which I think is very relevant. As you well know, and I know it was not in the question, but I think it is relevant for context we acquired the areas from Pluspetrol September of last year.

In October, we actually started operating And today, we have already drilled our 5 initial horizontal wells and we fracked those wells. So in 9 months, we have gone from entering into an area to fracking the wells. And as a matter of fact, Alejandro, the first well started flowing yesterday. And it will take some time for the cleanup and everything else and stabilizing that production And the bridge I wanna make is we have discussed this before in other calls, how do we bring that expertise from Argentina into Colombia?

And when I have spoken to some of the, new members of congress and new members of the incoming government and say, look, GeoPark is a company that has actually fracked, and we have had experience in fracking, so I think that is sort of a differentiator as a company is something that can play very well in terms of Colombia and opportunities. And there is a massive, massive opportunity set in unconventionals in Colombia. So that is something that we are assessing, Alejandro.

And so in terms of changes, because that is part of your question is, I think in terms of new licensing rounds, both conventional and unconventional oil and gas, there is a lot of discussion around environmental permitting, so the public audiences with the communities and everything else. So I do sense that there will be some changes But I would like to highlight, Alejandro, that having said all of that, it is not immediate. You know? Inauguration is in a couple days. it is not going to happen on the next day or August 8. It will take some time, but I do see a lot of the right signals from government.

And GeoPark is ready to do its part. You know? We are willing to invest. We are willing to grow in Colombia should there be opportunities. And as you know, the technical teams have been looking at these and assessing opportunities. So that is the first part. And you asked about Venezuela. Opportunities in Venezuela. And the first thing I would say is that our thoughts and prayers and support goes to the people that suffered. Or have suffered and are suffering after the earthquakes of June 24th, So over the last months, 4-5 months, myself, the team, we visited Venezuela numerous occasions. There is a lot of, opportunities.

I mean, the potential in terms of the oil in place in different licenses in different basins, is very, very large. We are assessing several opportunities. I will not go into details. But we are very pleased in terms of the technical aspects of the licenses, some of the terms that are being discussed, the quality of the people in PDVSA. I would like to highlight that. So there is some very good conversations going on. And, hopefully, we can get some of those opportunities across the finish line. And Alejandro, lastly, will obviously inform the markets and share with the markets any updates, when those, when those happen. Thanks, Alejandro.

Alejandro Anibal Demichelis: Thank you very much for the answers.

Felipe Bayon Pardo: Thank you.

Operator: Our next question comes from the web. Andres Peltaso from Itau BBA asks, what is the estimated CapEx for the remainder of 2026 in Vaca Muerta? Could you provide a breakdown by quarter? Along with the main activities driving the spend?

Rodolfo Martin Terrado: Good morning, Andres, this is Martin Terrado. Thanks again for your interest in GeoPark. We are very, very proud Of The Accomplishments We Had In Vaca Muerta. I will go straight to your question, and then I want to expand a little bit on the comments from Felipe.

But, basically, for the second half of the year, we expect in the order of $40 million to $50 million of capital investment That is pretty much aligned with what we have done in the first half of the year, which was, as Felipe said, 2-thirds of our capital program for the first half around $55 million So what we have done in the first half on CapEx is mainly workovers drilling and completion. And a little bit of facilities upgrade.

As we go into the second half of the year, it is going to switch, and it is gonna go mainly to finishing the facility upgrades, finishing connection to a neighboring operator that has spare capacity, and also the completion of a water disposal well. On top of that, we are going to be building the pad that will be the first pad to be drilled early next year, spotting in December of this year with a rig that Felipe mentioned that has been awarded for our fact mode. So that is a high level.

How the split, you can think about it, is going to be around 70-80% of those 40 to 50 in the third quarter and the remaining on the fourth quarter. And I do want to reiterate 1 more time how proud we are of our team accomplishments in Vaca Muerta, during the past months, 9 months that have been full of activity, drilling, completing, doing facilities work. We have fracked 180 stages, incident-free. And the efficiencies that we have seen and with our team during the frac stages are amongst the top quartile. And some of those metrics, I mean, the number of fracs per day we have done several days with 9 fracs per day. that is a benchmark.

On our number of hours per day where the frac sets were working, again, several days with 20 days 20 hours per day, fully operational. So that is a little bit of flavor of Vaca Muerta and the answer to your question.

Operator: Our next question also comes from the web. It comes from Alvaro Pelaez from BTG Pactual. They ask given the given the currently favorable oil market outlook, and the fact that it generated $41 million in hedging losses, why would you increase your hedging position in 2027? And secondly, they ask, are the wells you are planning to tie in Argentina in 2H 2026 within the RIGI proposal? If so, will you only tie in the wells until the RIGI application is approved?

Felipe Bayon Pardo: Thanks, Alvaro. And this is Felipe, and I will start with the second question, and then I will ask Jaime to take the first 1. If that is all right. Just to continue with the conversation around Vaca Muerta. So as I was mentioning earlier, the wells that we have drilled are being put into production as we speak. So we are not going to wait Actually, the first well it started flowing yesterday. And, we have some, facilities that we need to start in the pad of the wells. So we will be seeing some increase in production in Vaca Muerta, and at the end of the year from around 5 thousand-6 thousand barrels per day.

We are expecting, I mean, a statement from the government around RIGI. We have had some very good discussions over the last few months but we will wait for that approval on the RIGI when it comes. And that will eventually and if it is granted, we will cover everything else, our factory drilling and the big investments on the completion of 1 portion of the pipeline a full processing facilities, and the factory mode drilling. So the wells that we have drilled will be connected or in the next and put into production in the next few days and weeks.

Jaime Caballero Uribe: Jaime? Sure. Hi, Alvaro. Hi, everybody. In the matter of hedging, I think we need to start first with, you know, what is the purpose of hedging. And know, our goal at GeoPark is to deliver strong double digits risk adjusted returns under any market period. And in that context, having the possibility of delivering predictable cash flow in a period where we are going to be having increased investment and where we have persistent volatility, is key. And that is that is what we are seeing.

If we wanna put color on that, we are going through a phase in the company where as we are growing our exposure to Vaca Muerta, there is increased capital deployment And as you all know, those who have been following us, we also have a an inorganic ambition that would also require that. So that is that is why we believe that hedging needs to be part of the equation. And it will continue to be part of the equation. In that context, when we look at 2027, currently, we see that there we were under market conditions that allow us to obtain some very attractive floors for our pricing.

To give you an example, over the last few weeks, we have been able to attain positions where we are accessing floors of $75/bbl and ceilings of $85-$86/bbl. In that price environment of $75-$86, the company can deliver very, very, very attractive cash flow very attractive returns, and that is good. And it also gives us the comfortable position that we know as we engage in more investments in Vaca Muerta or elsewhere that the balance sheet of the company is not gonna be compromised. So that is the rationale, Alvaro.

Felipe Bayon Pardo: Thank you, Jaime.

Operator: And our next question comes from Gustavo Sadka from Bradesco. Please go ahead. Your line is open.

Analyst: Hello. Good morning, everyone. So I have a couple questions here. My first 1 is about cost. We saw a strong uptake in cost this quarter. It seems to be driven by the Colombian peso and Argentina peso. Appreciation and energy cost. Based on how these variables evolve recently, it is reasonable to expect normalization in the second half of the year. Or should we expect costs to remain at this level? And my second question is a follow-up on the Colombia question. This unconventional potential in Colombia should be now a possibility with this new government. Does GeoPark think conventional development is something that we could see in all GeoPark's blocks?

Or this would or would GeoPark have to pursue new bidding rounds? And also in conventional oil in Colombia, are new bidding rounds something that could attract interest for GeoPark? These are my questions. Thank you.

Felipe Bayon Pardo: Thanks, Gustavo, and good morning, and thanks for being in the call today. Good morning. And, yes, you have mentioned and we have reported, there is upward pressure on our operating cost from both the Colombian and Argentine currencies appreciation versus the dollar. And Martin will give us a bit of a flavor in terms of magnitudes and everything else. And I think also because of energy. And we need to be sure that we have, factored something that is upcoming, which is El Nino. You know, the phenomenon of El Nino with droughts and very little rain that will eventually take energy prices higher up.

We have done a lot of work in terms of getting ready for that, and Martin will take us through that. But we do see, Gustavo, that from the initial guidance that was $13-$15/bbl, we are outside of the guidance, and we are moving north. If you will. We will be higher up in terms of where we end up the year. So, Martin, why do not you give us a bit more details around that? And then I will take the other question.

Rodolfo Martin Terrado: Yes. So hello, Gustavo. Thanks again for your for your question. So the increase in operating cost as was stated by Felipe during the first half of the year reflects basically the combination of the FX impacts and the higher energy demand. And prices in Llanos 34. So it is demand and prices for Llanos 34. When we look at a unit basis, the lifting cost increase in the first quarter of this year from 14.7 to the quarter which has finished 17.8. So the average that we had for the first half was 16.2. And our guidance has been 13-15. So it is outside of the guidance.

For the full year, we currently expect the lifting cost to pretty much stay within where they are. So our guidance for the second half on finishing the year is in the order of $17-$19/bbl now. This is mainly again, if you look at each of the effects, the FX of exchange rate is in the order of $2.1-$2.5/bbl in our OpEx, and the impact on the energy costs that are rising about 1.5. So what we are doing on this matter, we have some long term long-term initiatives, which is connections to the electric grid. We are already connected, but we have 2 initiatives which are already ongoing. To have a greater flexibility.

Those will be coming next year and the year after. We have already signed a contract on biomass energy. But for short term, our focus is on getting the lower energy cost, looking at instead of spot, what we can do on fixed contracts. And also on different sources. So we are looking at different sources that could be available such as fuel and others. And then we look inside. And what is it that we can do to improve our efficiency energy efficiency?

And I will give you 1 example so that I do not extend that much, but 1 example is in the past year, we have captured all of our gas and we are generating out of that gas around 1.5 MW. And our field consumes in the order of 65 MW. So those are things that we are looking working internally and with our contractors to see, you know, can we reduce the energy consumption of our pumps and so forth. And finally, 1 of the numbers that we have done so that you get a sense, we have done some sensitivity.

And for each 100 pesos per US dollar, that the exchange rate changes, for the for the for the remaining of the year, it will mean around $2.5 million either above or below in our OpEx. So it is considerable and, like I said, we are working on all those fronts. Thanks.

Felipe Bayon Pardo: Thanks, Martin. And I would just add that, Gustavo. Obviously, we are we are doing everything in terms of our own remit of responsibilities in terms of ensuring that our operations are safe and efficient and reliable. And we will see where the exchange rate will go. You know? Last week, the central bank intervened with the purchase of dollars. The dollar has gone up a bit, but, know, we will need to operate efficiently and reliably. And we will continue to do what is within our own hands in terms of our operations. I will I will move on to your question on Colombia.

And I will I do not wanna repeat myself, but we are very excited with the incoming government. They have been supportive of, industry overall, of investment. Of rule of law, and they are very keen on trying to do things quickly. You know? And that is why I was mentioning our experience in Vaca Muerta. You know, from receiving the operation to fracking in 9 months. With drilling wells in the middle of that. So we can be very agile. We can be very nimble, and we can operate safely. And we are definitely interested definitely interested in the unconventional potential in Colombia. Absolutely.

So I mean, a lot of our team members have a lot of experience in unconventionals. And 1 of the strategic reasons behind Vaca Muerta, which is a great investment for the company, and even better with the RIGI opportunity or possibility, is to bring some of that expertise and know how back to Colombia. So doing the fracking and doing the unconventional development and bringing some of that experience back to Colombia. So if there is no bidding, in unconventionals and conventionals, we will obviously look at that. You know? We are we have a strong foothold in Colombia. We like operating here. We are committed to the country.

So we will definitely look at the opportunities as they come and be very proactive in terms of, capturing some of those opportunities. Thanks, Gustavo. Thanks for the questions.

Operator: And our next question comes from the web. it is from Joaquin Robet from Balanz. The first question reads, water flooding has helped support production at LL a 34. How do you plan to keep output stable going forward? And secondly, with a strong hedge position in place for 2H 2026, how should we think about expected hedging results over the next 2 quarters?

Felipe Bayon Pardo: Thanks, Joaquin. And I will ask Rodrigo to take the first 1, and Jaime, if you can take the second 1. Rodrigo.

Rodrigo Dalle Fiore: Hello, Joaquin. Thank you for your question. Actually, waterflooding is key not only in production but represents 25% of the production of the Llanos 34 today. Those are key to the development plan. But waterflood is not the only thing that we are executing and doing in the field. We are we are executing an infill development, an infill drilling program with a relative with very successful last year with 6 wells. We started this year with the 7, and we are moving to the north of the field with another 7 wells in that area. Actually, we are executing a work program where we execute, we expect to finish the year with more than 25 workovers in the field.

And we have 4 wells injecting polymer today. We expect to finish the year with 9 injectors and for next year, for the beginning of next year, we want to add another 9 wells for a total of 18 wells in polymer flood. So we are doing a lot of things to keep production stable, This is impossible to do it if we are not very detailed in the disciplined operation. And also have a very strong alignment with our partner. So that is key also in this relationship that we have.

If you ask about the future, what we are thinking about the future, most of the activity in waterflooding and polymer are located in the southwest of the field, What we expect is to move to the Northwest Northeast of the field with new injector wells, so the waterflooding is not there yet. that is the plan for the rest of this year. And next year with more infill drilling wells, injector wells in term of the water and polymer as well. So that is the plan that we have to keep production stable. In Llanos 34. Very well, Rodrigo. Thank you.

Felipe Bayon Pardo: Jaime.

Jaime Caballero Uribe: Yes. And Joaquin, moving on to the question around hedging. Basically, 2026 position has remained unchanged since the last call that we have had. It was a position that was acquired probably at the back end of last year or early, 20 thousand barrels a day of barrels that we have hedged. We are we have a growing set of volumes in 3Q and 4Q that can get to about 25 thousand bbl/d after Vaca Muerta production ramps up. So that is remained unchanged since the last call.

The floors and ceilings associated to that production are $65/bbl on the floor end and ceilings of about $72-$73/bbl That position provides price support for a full year EBITDA that is in excess of $250 million despite the cost escalation that we have been talking about. Today. So even in these scenarios of, when you think about the ranges that Martin spoke about, the $17-$19/bbl potentially of OpEx cost escalation, we are expecting to have an EBITDA that is strong and competitive. Thanks.

Felipe Bayon Pardo: Thank you, Jaime, and thanks, Joaquin.

Operator: Our next question comes from the web as well. It comes from Isabella Pacheco from Bank of America. It reads, what are your expectations on social unrest under the new administration in Colombia? Can GeoPark do anything to work around it?

Felipe Bayon Pardo: Thanks, Isabella, and thanks for the question. 1 of the things that in GeoPark we value. it is part of our core values. it is this long term relationships with the communities, and the overall environment in which we operate And I will probably share something with you, Isabella, I joined the company just over a year ago. And 1 of the key reasons why I joined GeoPark is the way in which GeoPark conducted its businesses. In terms of being a safe operator, a reliable operator, an operator that in terms of both the environment and the communities did things very well.

So I think I mean, its history, GeoPark has built very strong relationships with the local communities in terms of some of them providing goods and works and actually working in some of our fields with the authorities and the likes and that is not gonna change. You know, with the incoming administration. I think we will just continue to strengthen how we do things in terms of our activities, working with those communities, our social investment, and a long term view and a long term view. So we will be we will be watchful. We will be very, very proactive.

And always sort of approaching this in a matter that is respectful and that actually has this long term view in mind. Thanks, Isabella.

Operator: And our last question from the web comes from Peter Low from Jefferies. On inorganic growth opportunities. Is GeoPark considering only oil focused assets or gas assets a possibility as well. Particularly in Colombia, where natural gas looks to be experiencing a multiyear supply demand imbalance. Thank you.

Felipe Bayon Pardo: Thanks, Peter. Thanks for the question. Yeah. I mean, we have been indeed focused in oil. We, I mean, we produce some gas, and we do some self power generation. In the field But gas and gas plays and gas opportunities is something that we have looked at throughout the years. So we are not closed to gas opportunities, as you rightly point out, there is a deficit in terms of demand of gas in Colombia, And I would probably just add that we firmly believe there are opportunities, gas opportunities in Colombia. Some of them associated with unconventionals that we have already mentioned in the call.

So if through fracking of and developing the unconventionals, we can get some gas to the market, that is something that we are ready to pursue. there is bigger opportunities around gas, but those are outside of the remit of the company. You know, things like the offshore And probably the other thing, and I will tie it back to a question that was made earlier, is there could be some opportunities, cross border opportunities with Venezuela around gas. So that is something else that we have looked at, and we are not close to that.

So definitely gas is something that we should the right opportunity come, we want to be involved, and we will continue to be proactive in that space. Thanks, Peter.

Operator: And we have no further questions. Would like to turn the call back over to the company's CEO, Felipe Bayon, for closing remarks.

Felipe Bayon Pardo: Thank you. Thanks a lot. And, again, thanks for participating this morning and this afternoon in this call for our Q2 results Very, very thrilled with what is going on in terms of how we have managed to implement strategy which is absolutely, as we have discussed before, 2 main things, protecting what we have, and we have some good operating results in Colombia and in Argentina and Vaca Muerta. And going back to a path of growth. which Vaca Muerta has actually delivered to us so far, and we are very happy with that. And going forward, we have talked about opportunities in Colombia. So, we will continue to work on those. Opportunities in Venezuela.

And I just wanna highlight that there is some potential opportunities in Argentina as well. You know, there is an upcoming round before the end of the month, and we should be participating in that round as we want to grow our presence in Argentina. And 1 last thing I would say, you know, given where we are with the current environment, the incoming government, before we have said that we wanted to be probably around $190 million to $220 million of CapEx. We see an opportunity of accelerating. Some activities that are accretive in value and we see that the CapEx number could go all the way to $250 million.

So I think that just reinforces our commitment to the geographies and countries in which we operate, and our willingness to continue to provide value to shareholders. So thanks again for your interest in the company. And for joining today's call. Have a great day, and stay safe.

Operator: This concludes today's conference call. Thank you for your participation. You may now disconnect.

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